The Australian dollar remained under pressure below $0.723 on Monday, after losing 1% in the previous session following a jump in the greenback and US Treasury yields as the hawkish US rates outlook remained intact. Federal Reserve chair Jerome Powell said last week that the US economy is ready for the start of tighter monetary policy, while other Fed officials signaled the first potential rate hike in March. Meanwhile, the Reserve Bank of Australia has repeatedly insisted that a hike in domestic rates is not likely until 2023, or until inflation pushes sustainably within its 2-3% target range. The RBA also lagged behind other major central banks in dialing back pandemic-era stimulus, but is set to decide whether to end its bond-buying early this year at its Feb. 1 meeting.
Historically, the Australian Dollar reached an all time high of 1.49 in December of 1973. Australian Dollar - data, forecasts, historical chart - was last updated on January of 2022.
The Australian Dollar is expected to trade at 0.72 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.70 in 12 months time.